Daily Forex Analysis – January 4, 2010

AUDUSD Analysis.
AUDUSD’s uptrend from 0.8734 extends further to as high as 0.9007 level. As long as 0.8900 support holds, we’d expect uptrend to continue and one more rise towards 0.9050 area is still possible later today. On the downside, the pair could possibly be forming a short term cycle top at 0.9007 level on 4-hour chart. Key support is located at 0.8900, a breakdown below this level will confirm the cycle top and indicate that the rise from 0.8734 has completed, then another fall towards 0.8734 could be seen.

20100104_audusd_1

EURUSD Analysis.
EURUSD consolidates in a range between 1.4218 and 1.4457. As long as 1.4457 resistance holds, we’d expect downtrend to resume and one more fall towards 1.4100 is still possible. However, above 1.4457 will indicate that the fall from 1.5144 has completed at 1.4218 already, then further rally could be seen to 1.4500 or even higher.

20100104_eurusd_1

USDJPY Analysis.
USDJPY remains in uptrend from 87.37 and the rise extended to as high as 92.74 level. Further rally to 94.00 area is expected later today. Near term support is at 91.90 and key support is located at rising trend line from 87.37 to 88.97. As long as the trend line support holds, uptrend could be expected to continue.

20100104_usdjpy_1

USDCHF Analysis.
USDCHF trades in a range between 1.0278 and 1.0421. The price action in the trading range is more likely consolidation of downtrend from 1.0507. One more fall towards 1.0200 is still possible after consolidation. Resistance is located at the upper border of the falling price channel. As long as the channel resistance holds, downtrend will continue.

20100104_usdchf_1

GBPUSD Analysis.
After a sharp bounce from 1.5829, GBPUSD pulled back from 1.6232, suggesting that a short term cycle top is being formed on 4-hour chart. Another fall towards 1.5829 is expected in a couple of days. However, a break below 1.6040 is needed to confirm the cycle top.

20100104_gbpusd_1

USDCAD Analysis.
USDCAD might be forming a short term cycle top at 1.0576 level on 4-hour chart. Deeper decline is now in favor and next target would be at 1.0365 previous low. Resistance is at 1.0576, only rise above this level could take price to 1.0600-1.0650 area.

20100104_usdcad_1

For long term forex analysis.

Get Your Free Elliott Wave Tutorial Now!

See also:
Forex Articles
Forex Reviews
Powerful Profit System
Automate Your Trading Profits
Boost your Profit to Extreme